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STATEMENT OF PROFIT AND LOSS
Accountancy
In Illustration 6 of Textbook page no.4.41 of Paper1, opening stock, closing stock, and Purchases amounts are given.... But Under 'Cost of materials consumed', only the value of purchases is included....... i hav attached the qn and answer with this.... But in other questions, we have found the value by using: Opening stock+Purchases-closing stock Why??? Please clear this doubt
Answers (8)
CA Suraj Lakhotia Admin
Inventory is assumed to be of finished goods.
Can we consider inventory as Raw materials and write as Opening+purchases-closing=cost of materials consumed. ????
Thread Starter
James JsCan we consider inventory as Raw materials and write as Opening+purchases-closing=cost of materials consumed. ????
You can do that. A better assumption is that it is finished goods.
CA Suraj Lakhotia Admin
You can do that. A better assumption is that it is finished goods.
Ohh kk sir...... Thank You
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